PDF, 1.2 MB - Pfleiderer AG

III. Principles of Accounting and Valuation
financial statements of the legal entity pfleiderer ag notes pfleiderer ag 131
Property, plant and equipment is carried at acquisition or production cost, less scheduled
and extraordinary depreciation and investment grants received. No investment grants were
received in 2002.
Scheduled depreciation for property, plant and equipment is applied mainly using the declining
balance method based on the useful life of the asset in question, as defined by German
tax law. The useful life of additions to property, plant and equipment is determined according
to the depreciation tables issued for purposes of taxation by the German Federal Ministry of
Finance as from January 1, 2001. Additions made in the first six months of the fiscal year to
movable property, plant and equipment are depreciated by their full yearly amount, while additions
recorded in the second half of the fiscal year are depreciated at half their full yearly
amount of depreciation. Low-value assets are fully written off in the year of acquisition and are
shown as retired. No depreciations pursuant to Sec. 254 HGB were made during the year
under review.
Financial assets are carried at the lower of cost or market.
Accounts receivable and other assets are generally carried at nominal value. In individual
cases, recognizable risks are covered by individual valuation adjustments, while the general
credit risk is sufficiently covered through a lump-sum adjustment.
Accruals for pensions and other obligations are carried at the actuarial value pursuant
to Sec. 6a EStG (“Einkommenssteuergesetz”: German Income Tax Act) and are based on an
interest rate of 6 percent. The calculations are based on the actuarial tables drawn up by
Dr. Klaus Heubeck in 1998.
Accruals for taxes and other accruals have been calculated and appropriately set up to
cover all recognizable risks to the extent expected.
Liabilities are carried at their repayment amounts.